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Life Changing Money Habits You Should Start in Your 20s

Everyone’s caught up with how to make money. But what about how to manage it?

You’ve heard the adage “A dollar saved is a dollar earned”. Here’s the thing, it’s not that simple. Personal finances isn’t all about spending as little as possible. It’s about putting it in the right place.

These are the things they don’t teach you in college.

Get one credit card. ONLY ONE!

Hold one a minute. Wouldn’t that encourage spending money I don’t have?

Nope. We’re not endorsing the habit of spending now and paying later. The practicality of having a credit card is actually to obtain a credit score. It’s basically a statement that says hey this person is capable of paying his/her dues. Banks look at your score when you ever want to take a loan someday.

And you will, when you want to buy property. Having a good credit score increases your likelihood of getting your loans approved, speeds up that process, and even allows more credit to be available to you.

So don’t wait until the day you decide to buy a house to start having a credit history. All you have to do is get one credit card that suits your needs and consistently pay your debt on time.

Start putting money aside for retirement.

You just graduated. You got your first job. You transition to a life of gruelling hours. Of course, you want to spend your hard-earned money on nice things.